At present, 20-year Treasury bonds are yielding 4.9% while a 3 months treasury note that...
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At present, 20-year Treasury bonds are yielding 4.9% while a 3 months treasury note that you are interested in are yielding 2.5%. Assuming that the default-risk premium on both bonds is the same and that the liquidity-risk premium on the 20-year Treasury bonds is 0.76%, what is the maturity-risk premium on the corporate bonds?
A) 3.16% B) 4.14% C) 2.40% D) 1.64%
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